Some N.Z.-assisted firms in trouble

Press, 10 February 1983, Page 19

Some N.Z.-assisted firms in trouble

NZPA special correspondent Apia, Western Samoa A leathergoods manufacturing company, the first venture to be set up in Western Samoa,. with help from the New Zealand Pacific Islands industrial development scheme, has been forced to sell up. Wiseman (Western Samoa) Company, Ltd, has been bought by a Hawaian businessman for an undisclosed amount. One other company from a total of 10 which received assistance from the-scheme, formed , in 1976,; has also, .closed shop. -Two-others have ’ tentatively - closed pending attempts to.save them. • Pacific Wood Products,

which set out to make coconut wood products, closed office in 1981; Oceania Appropriates Technology, which proposed to make solar energy products, got into financial difficulties when its general manager, also a director, declared bankruptcy after a court order to pay back debts he owed the company; and S.M.I. (Samoa) Company, Ltd, making a colouring agent to be used in the dairy industry, has stopped production. When Wiseman (Western Samoa) had problems early last year, Wiseman (New Zealand), Ltd, came to the rescue, sending a manager, Mr Dudly Gentles, to resuscitate the company’s business. Mr Gentles returned to New Zealand in August, and Wiseman was up for sale.

New Zealand’s Trade and Industry Department, which supervises the scheme, gave Wiseman in Western Samoa a total of $9500 plus $5300 for feasibility studies when, it was set up. Except for Rothmans Tobacco Company, all other scheme-assisted companies, which include Samoa Industrial. Gases, Brugger Indus-

tries, Pacific' Paints, Paper Industries, and Samoa Biscuits, appear to be running successfully.

In the meantime, there is a cigarette shortage, and individual firms are importing their own brands from overseas. Rothmans is finding difficulty in paying its debts to its parent company in New Zealand, which supplies it with raw materials. Although it has “well in excess of $2 million’’ in a local bank,, it has problems with debts because of the lack of foreign - revenu.es. -

As a result, the New Zealand supplier has .said it will reduce the sale of supplies until the debt has been lowered markedly. To- try to clear its outstanding debts, Rothmans is diverting foreign revenues from the sale of its products in other South Pacific countries to its parent company in New Zealand, according to a company spokesman. ■( The development' scheme helps the . companies with suspensory loans, staff training and staff transfers, and with feasibility studies.